What is the most popular Medicare Supplement plan?

The most popular Medigap Plan is Plan F. This plan covers all out-of-pocket expenses for Part B – so there’s nothing to worry about on the back-end when receiving care, including the Part B deductible of $185 (in 2019), Part B excess charges, or doctor and ER copays. When you have a Plan F, you only have one job, and that’s to pay your monthly premium. Unfortunately, Congress has legislated that Plan F can no longer be sold after 2020 – so if you already have a Plan F, you’ll be able to keep it, but after 2020, new enrollees will no longer be able to get one. The next best option will be Plan G.

Why is Plan G the second most popular Medigap Plan?

Plan G is quickly becoming the next most popular plan for several reason – not only because Plan F is going away in 2020, but also because it costs less per month than Plan F, and traditionally has lower rate increases than Plan F. When you add up the annual savings of Plan G, even though you have to pay your own Part B deductible of $185 (for 2019) – you still come out ahead, compared to making your insurance company automatically pay this deductible for you as with Plan F.

Why is Plan N a good value for healthy seniors?

Plan N, when compared to Plan F, represents a major savings opportunity for seniors who are healthy and rarely visit the doctor. When compared to a Plan F, seniors on a Plan N can save hundreds if not a thousand dollars per year by paying the Part B deductible themselves and paying copays for seeing doctors or going to the ER. Even if you went to the doctors once a month and paid your Part B deductible, you’d be hard-pressed not to find any savings with a Plan N. Like Plan G, Plan N also has traditionally lower rate increases than Plan F, which helps seniors save even more money over time.

Why would seniors consider a High-Deductible Plan F?

Seniors who don’t like overpaying for healthcare they’re not going to use might opt for a High-Deductible Plan F. The plan requires you to pay an annual deductible of $2,300, but then after you do, this plan acts like a normal Plan F, which pays the rest of your Part B expenses for the rest of the year, in addition to your Part A deductible, coinsurance and skilled nursing facility co-insurance. 

In terms of monthly premium, a High-Deductible Plan F is only about one-third to one-half the cost of a normal Plan F, so this monthly premium savings can go toward the annual deductible. Typically, seniors who prefer this plan are wealthy enough to afford the higher deductible – and/or healthy enough that they don’t even reach the full deductible each year, so they can pocket the savings over time to eventually cover the deductible if they had to.